The Philippine peso dropped to a historic low against the US dollar, while the benchmark stock index fell below the 6,000 level, signaling heightened investor anxiety amid global economic uncertainties.
On Thursday, the peso weakened to P56.50 against the greenback, breaching its previous record low. Simultaneously, the Philippine Stock Exchange index (PSEi) slipped below the 6,000 mark for the first time in months, closing at 5,987.65.
Analysts attribute the declines to a combination of factors, including a strong US dollar, rising global interest rates, and domestic economic concerns. The central bank has signaled possible intervention to stabilize the currency, but market sentiment remains cautious.
"The peso's depreciation reflects broader regional pressures," said a local economist. "Investors are pricing in further tightening by the US Federal Reserve, which is draining capital from emerging markets."
The stock market rout was led by losses in banking, property, and industrial sectors, with foreign selling intensifying. The PSEi has now lost nearly 10% since the start of the year.
Government officials urged calm, noting that the economy remains resilient. However, the peso's fall is expected to increase import costs and fuel inflation, potentially prompting the central bank to raise interest rates further.